Organisational Structure and Decision Making
How a company organises itself determines how quickly it can respond to changes and how effectively information flows between different levels.
Tall structures have many management layers with clear authority levels. Everyone knows their role and reporting line, plus there are loads of promotion opportunities. The downside? Communication crawls through multiple levels, making the organisation slow to react to market changes.
Flat structures strip out management layers for faster communication and quicker responses to external factors. However, fewer levels mean limited promotion prospects and staff often get overloaded with extra responsibilities.
Decision-making happens at three levels: strategic decisions long−term,high−riskchoicesmadebyseniormanagers, tactical decisions medium−termplansbymiddlemanagers, and operational decisions day−to−daychoicesbysupervisorsandstaff. SWOT analysis helps managers make quality decisions by identifying internal strengths and weaknesses alongside external opportunities and threats.
Successful managers master six key functions: planning future events, organising resources effectively, commanding their teams, coordinating different departments, controlling standards, and motivating people to perform their best.
Top tip: SWOT analysis isn't just theory - businesses use it constantly to make real strategic decisions about everything from product launches to market expansion.